states, governor romney holding three rallies in florida, and president obama stopped in new hampshire and talk about his promise for the future. >> the unemployment rate is falling. manufacturing, coming back to our shores. our assembly lines are humming again. housing prices are starting to pick up. housing starts are on the move. we have a lot of work to do but, new hampshire, the country has come too far for us to turn back now. >> governor romney holding three rallies across florida today where he is calling for more partisan cooperation in washington. i'll see you again on the fox news channel at 6:00 eastern. right now we go back to "the journal editorial report",. >> welcome would to journal --

"the journal editorial report." aisle paul gigot. the election focuses on a mall group of key states but not the states either campaign or the political pundits might have expected. wisconsin, pennsylvania, and michigan, all of which president obama carried by double digits in 2008. my guess this week says mitt romney may have suburban voters to thank. michael, great to have you back. >> it's go to be with you again, paul. >> where do you think this race stands right now? is romney surging as much as the polls appear to make it seem? >> yeah. i think romney is ahead in the race in the national race. i think he is within striking distance of the 270 eelectoral votes he needs, and the areas of the country where he made the greatest gains, when you compare him with the showing of john mccain tw 2008, appears to be

a affluent suburbs. once upon a time affluent suburbs were solid republican territory, george h.w. bush in 1988 got big margins and carried states like michigan, ohio, california, in the four suburban counties outside philadelphia, he got 61% of the vote. zeroed out the democratic margin in the city of philadelphia. if you look at over the last 20 years, there's been a democratic trend in the affluent suburbs, and so president barack obama carried those four counties in pennsylvania with 57% of the vote if he carried the state. mitt romney grew up in bloomfield hills. >> a suburb of detroit. >> well, i grew up in the same area, went to the same high school so i'm quite familiar with it. he seems to be doing better. i if you look at the battleground poll -- the pew research poll where you have a

big sample. so if you have a subsample you have some confidence the numbers are good. you see that romney, post-october 3rd debate, is carrying apparently statistically significant margins. people with incomes over over $75,000. barack obama carried them 15-49 in 2008. romney made bigger gains with the high income people than people in the lower income category. >> the swing over the last 20 years in affluent suburbs has been attributed to culture, gay marriage and the southern tilt of the republican party, is the swing back this year really because of the economy trumping culture in the minds of most voters? >> well, i think that's true of all segments of voters. the economy is trumping the cultural issue of. it rubbed them out. i think also mitt romney is more the kind of candidate that

people in affront -- affluent suburbs cotton to. he is from the suburbs himself. he won the republican nomination in affluent areas and shown himself to be more articulate than president obama, the supposedly great orator. people in affluent suburbs like people who are articulate, who use words good, as i like to put it, and that is an advantage that mitt romney has and that he demonstrated to great effect there, and i think -- i wrote earlier in the washington examiner that romney was a kin dread spirit to many aflute people. politically awkward on some occasion. he is able to make a sharp point but is polite and is conservative on the cultural issues. has an attitude that reminds me of the inscription on the

tombstone of an english woman which noted she was religious without enthusiasm. >> well, what's this democratic argument you're hearing now, that says, okay, all of that might be true, but republicans have no chance at michigan and pennsylvania anyway. and, look, in ohio, which the republicans have to win, romney has to win, where barack obama is still leading, still leading wisconsin and iowa and nevada. that is his fire wall, and unless romney can break through that he won't win the election. >> his fire wall used to include florida and virginia and they're not talking about that as fire wall states anymore with romney ahead in florida. the very fact that michigan and pennsylvania, which obama carried by 16 points and 10 points four years ago -- have gotten close i think has to be an indication that the affluent suburbs, oakland, macomb, livingston in michigan, have been moving towards romney in a

significant way, and i think that the democrats are giving you static analysis there. and i think there may be a dynamic at work here. the affluent suburbs are places that people generally tend to turn out in large numbers, and we've seen signs that republicans have more enthusiasm this year. i think one reason ohio is closer is that affluent suburban counties are only an eighth of the statewide votes and a warsmer michigan. >> the romney campaign is saying they're making major investment in ohio, time and money. are they making -- taking a gamble by making a bet on ohio, that if they lose, they will not have fought or invested a lot of money or time in michigan and pennsylvania, which they might win? are they making a long bet on ohio? >> well, i think they're probably making a correct bet on ohio. ohio is 18 electoral votes are important to them. if i was them, i would be going

up on the philadelphia and detroit media markets or at least being serious consideration it to because those get the bulk of the affluent suburbs in the states. you felt -- i'd be going up with ads geared to that population. >> all right. michael, thanks thanks so much e being here. still ahead. billions of dollars in defense cuts set to kick in come january. president obama said on monday the so-called sequester will not happen and wasn't his idea in the first place. we'll check the facts and tell you why it could matter in some key states on election day. [ male announcer ] you like who you are... and you learned something along the way. this is the age of knowing what you're made of. so, why let erectile dysfunction get in your way? talk to your doctor about viagra. 20 million men already have. ask if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain;

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>> not something i proposed. something that congress proposed. it will not happen. the budget we're talking about is not reducing our military spending. it's maintaining it. >> that was president obama in monday night's debate, claiming the impending defense sequester, some 55 bill in automatic cuts, coming to the military in january, will not happen. and blaming congress for coming up with the idea. part of a compromise last year to raise the debt ceiling. >> we're back with dan henninger and kim strassel, and matt also joins the panel, so, president denying paternity for the sequester, matt. why don't you apply a paternity test. >> two whoppers there and the

first one it was the white house idea. >> how do we know that? >> a book heavily sourced in the white house says gene brought it forward last year. the republicans didn't understand and it it took a couple days for them to figure out what is was. across the board cut. >> republicans right there cat quick. >> the second whopper is the defense budget for 2013 cuts the budget in nominal terms for the first time since then 90s. they reduced defense consistently for the last four years. the one federal program that has clearly not liked. >> i thought it was a totally politicized statement. he said it will not happen was aimed for virginia and new hampshire, two states with big defense plants and industries. secondly, blaming congress by way of saying if it happens, virginia and new hampshire, it's going to be congress' fault. and mat is exactly right.

if -- it was the white house that brought it to congress and it was meant to be a sort of sword of dam close held -- dam ma close held over the republicans and they didn't blink. >> he wants to pressure a tax increase or defense cuts and the thinks, understandably, -- he hopes they'll go for a tax -- democrats were willing to risk some domestic spending cuts. so, kim, how is this playing on the campaign trail? mitt romney is trying to make hay with this defense issue in states like virginia, new hampshire, and ohio. >> and that is unfortunate for the president and they have been worried about that, which is why the administration was advising defense companies not to send out legally required layoff notices which were due to hit before the election because they werewide bet the fallout in places like virginia, new hampshire, north carolina has a

big defense industry. and you're seeing mitt romney now running ads, talking about the sequester, laying this back on the white house's lap. you're seeing senate candidates, like george allen, hitting this very hard and this is not necessarily helping the white house on at the trail right now. >> you think this is a winner for romney. >> to the extent it has morphed into a jobs argue. there's the national security argument which does appeal to some, that the president is not doing some to stop the defense cuts and also the jobs argument this is going to hurt those who work in the defense sector. >> matt, how much real damage would there be to the defense of the united states in 2013 if the defense cuts hit? there's a lot of people who argue, defense department has a lot of bloat, if we're going to cut domestic spending, shouldn't the pentagon take a hit, too? >> well, only can'ts to are fifth of federal spending.

take half of the reductions in the sequester and the previous budget plans as well. the problem is the pentagon -- bob gates was the previous pentagon chief said you need 2% growth to fix the ships. >> the increased in the cost of living. >> and they have over the last decade we have been involved in wars in afghanistan and iraq. a lot of tanks and ships haven't been maintained in that time. we're also the only superpower in the world so it's true the u.s. does spend more than the next ten countries combined but we also are asked to do a lot more than anyone else. >> dan? >> well, i think for years the democratic party looked as the defense budget the big rock candy mountain. a lot of money to transfer to domestic spending. the president keeps saying the money spent on iraq and afghanistan is going to be reprogrammed into domestic investment. and that i think is what they would like to do down the road but the rest -- much of the rest of the defendant budget. >> although the republicans may

be talking this. s into a catastrophe increase because if they say it's going to do damage to at the troops, what choice do you have? so there's going to be some tough decisions. up next, we go to michigan and the battle to reign in big labor, a measure on the ballot could give unions unprecedented new power. with the spark cash card from capital one, olaf's pizza palace gets the most rewards of any small business crit card! pizza!!!!! [ garth ] olaf's small business earns 2% cash back on every purchase, everday! helium delivery. put it on my spark card! [ pop! ] [ garth ] why settle for less? great businesses deserve the most rewards! awesome!!! [ male announcer ] the spark business card from capitalne. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet?

well, it's down to the wire in michigan, where an expensive battle is being waged or a union backed ballot measure that would enshrine collective bargaining rights in the state constitution and stop right to work

legislation. michigan would be the first state to constitutionally guarantee the right to unions. so, colin, you've been following this michigan debate. what would this measure mean for the state of michigan in termed of union rights? >> paul, this is an unbelievable union power grab. you basically have to understand about what's going on is it would essentially give the unions in michigan a pocket veto on any legislation involving anything that could be remotely connected to collective bargaining. they already looked at this and the michigan attorney general said this would not only affect future laws and could overturn as many as 170 laws on the books. so this would be endlessly litigated and gives union bosses more authority than the

legislature. >> so, what kind of laws would be -- that have been passed that most people in michigan would say, we have come to live with them, the were settled democratically, people agreed, the legislature passed them, the for signed them. we had elections afterwards. what laws would be overturned? >> there are two laws in particular that they're concerned about. one is the so-called 80-20 law which says that taxpayers don't need to pay more than 80% of public employees pension benefits. and the other one is a law basically regarding teachers. the fact that there have been some school reforms that have allowed various merit measures and teacher promotion measures that could also be overturned by this. this is something that michelle rei, the former dc schools chancellor who runs a students first group, is very concerned about and her group made a big ad in michigan to fight this. >> governor rick snyder, the republican in michigan, asked

union leaders not to put this on the ballot, and he said in return i'll tell business people, don't put a right to work law on the ballot. the business leader agreed. labor put it on the ballot anyway. did snyder get played like a patsy? >> he probably did. michigan is a heavily unionized state. one of the most unionized states in the country with 18% of the work force, they're using michigan here as their test case for this new idea that if they just go on offense, and enswine the right -- enshrine the rights in the constitution. >> if this passes, no more scat -- scott walkers. >> this is a big deal. >> i give the unions credit. they were on the back foot in wisconsin, indiana, mitch daniels took away the paycheck where you automatically, if you're a government employee, your due goes to the unions.

now you have to choose. you have to -- >> by employee. >> so this is really an attempt to fire wall in michigan and try to push back. >> so, are the business groups sufficiently mobilized here to actually fight back or have they been caught napping and they could lose? >> they could lose. we suggest it would be -- issues coming up in california as well where unions are fighting initiatives to reign them in, public sector unions are the only entrenched lobby in america fighting for big government and the taxes to pay for it. and that's really the bigger battle in michigan, and across the country now. >> if it spreads it will be an empty victory because businesses in states like michigan and ohio, wisconsin, will move out. they'll go down to tennessee, kentucky, south carolina, and texas, leaving those state with nothing but these enormous public debt to the union.

>> colin, where does this stand electorally now? >> it's extremely close, actually. it's within the margin of error, and this is something that the detroit news said in its recent poll, 43-41. so, this is going to good right down the wire. unions are -- pouring in money. >> national unions are pouring in the dough. we have to take one more break. when we come back, hits and misses of the week.

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>>. >> paul: time for mitts and misses of the week. dorothy. >> here is a miss to the national geographic channel which is normally a reliable network. that is because they are airing two nights before the election a film about seal team six which manages to enlarge obama's role and cheerleading for obama. they say it's not politicized

but the damage to the recipe face raising large suspicions was not a good corporate decision. >> probably hit to my hometown of brooklyn. the next week you are going to have return of traditional sports n first time in 50 years, certain baseball team left for the west coast. but until the dodgers come back brooklyn will never be back. >> paul: all right. >> recently the court in washington, d.c. has been strike down federal regulations like securities and exchange commission and epa. it enrages regulators that has an intimidation campaign to get judges appointed to back off doing this kind of stuff. so it's really an ugly scene.

this a hit for the judges for sticking to the law and not politics. >> paul: steve? >> more signs that government motors just isn't working for taxpayers. obama administration has put five billion of taxpayer money behind the development of an electric car but one of major battery companies for these cars went bankrupt. now another major producer looks like it's in financial trouble. we should have a policy in this country that says separation of car and state. >> paul: all right, steve. thanks very much. if you have your own hit or miss and follow us on twitter. that is hit for this week's show. thanks to my panel and all of you watching. i'm paul gigot. we hope to see you right here next week.